4You are given the following for the production of office chairs by thecompany 'Chairs and More":edTotal Fixed Costs (JMD$)10,00010,000Quantity producedout of10020010,00010,00010,00010,000question300400500600Variable cost per unit is $150. The production of 15,000 chairs will cost:Select one:O a. $2,250,000O b. $1,500,000O c. $10,000O d. $2,260,000

Total cost = Total fixed costs + Total variable costs where, Total variable costs = Variable cost…

You are given the following for the production of office chairs by the company 'Chairs and More": Total Fixed Costs (JMD$) 10,000 10,000 10,000 10,000 10,000 10,000 Quantity produced 100 200 300 400 500 600 Variable cost per unit is $150. The production of 15,000 chairs will cost: Select one: O a. $2,250,000 O b. $1,500,000 O c. $10,000 O d. $2,260,000

You are given the following for the production of office chairs by the company 'Chairs and More": Total Fixed Costs (JMD$) 10,000 10,000 10,000 10,000 10,000 10,000 Quantity produced 100 200 300 400 500 600 Variable cost per unit is $150. The production of 15,000 chairs will cost: Select one: O a. $2,250,000 O b. $1,500,000 O c. $10,000 O d. $2,260,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 12EB: Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost...

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Example 1Lingkod Company, a manufacturer of furniture sets, is considering to purchase the seat cushions needed for its chairs. The expected purchase price of these seat cushions is P50 per unit. Lingkod has been making its own seat cushions since it started operating. If it would continue to produce these cushions, the company expects to incur the ff costs: Raw materials - P13, Direct labor-P15, variable OH-P5 and Fixed OH (based on the average production requirement of 10,000 units)-P20. Should the company continue to make the seat cushion or buy from outside supplier? Example 2Using the same data in example 1 for Lingkod Company, assume that 40% of the fixed factory OH could be eliminated if the company would discontinue the manufacture of seat cushions. Should the company make or buy the items? Example 3Using the same data in example 1 for Lingkod Company, assume that 40% of the fixed factory OH could be eliminated if the company would discontinue the manufacture of seat cushions.…